Fortis Healthcare today announced that one of its step-down subsidiaries will complete the divestiture of its entire holding in Dental Corporation Holdings Ltd (Dental Corporation) by May 31, 2013, in favour of insurance major, Bupa.
The Supreme Court of Victoria today approved the scheme of arrangement for Bupa Australia health Pty Ltd. to complete its full acquisition of Dental Corporation. Fortis had announced the sale of its entire stake in Dental Corporation, in December 2012. Fortis will receive A$2.347 per Dental Corporation share, aggregating to A$270.38 million.
Fortis had acquired Dental Corporation in January 2011 and grew it from 140 dental practices to around 200 dental practices in Australia, New Zealand and Canada. The modelhowever, remained confined to these countries and it found limited acceptance in other Fortis geographies, as originally envisaged, prompting the divestiture.
Fortis Healthcare has demonstrated remarkable agility and has reacted swiftly to take advantage of changes in the competitive landscape as well as growth opportunities. As a result, the group has become Indias No. 1 healthcare chain in the short span of a decade.
The ownership change was overwhelmingly supported by Dental Corporations shareholders last week before being approved by the Court today.